LocatePLUS Holdings Corp. (LPLHA)

[bartermania]

NEWS ARTICLE....7/14/2005 3:37pm


LocatePLUS Completes $8 Million Financing

BEVERLY, Mass., July 14 /PRNewswire-FirstCall/ -- LocatePLUS Holdings Corp. (OTC Bulletin Board: LPLHA, LPLHB, LPLHW), an industry-leading provider of business-to-business and business-to-government investigative solutions, announced that it has closed on an aggregate $8 million financing. The financing consists of 3% senior convertible notes which are convertible into the Company's common stock at a conversion price of $0.10 per share and warrants to acquire an aggregate of 32,000,000 shares of common stock at an exercise price of $0.15 per share. The investment was led by the Special Situations Funds, which invested a total of $5,000,000 and included $1,000,000 from Greenway Capital. Laidlaw & Company (UK) Ltd., a New York-based investment and merchant banking company, acted as placement agent for the transaction. Proceeds of the investment will be used to retire outstanding debt owed to Laurus Master Fund, Ltd. and for working capital purposes.

In connection with the financing, the Company has agreed to pursue a recapitalization of its capital stock by combining shares of the Company's Class A Voting Common Stock and Class B Nonvoting Common Stock into a single class of voting common stock and by seeking to effect a 1-for-50 reverse stock split.

Commenting on today's announcement, LocatePLUS CEO Jon Latorella stated, 'We are taking these actions at this time to simplify our capital structure so that we can make the Company more attractive to potential investors. We hope that the recapitalization will allow us to qualify to include our shares in a national trading market, thereby increasing the liquidity of our shares and simplifying future capital raising activities.'

Latorella concluded, 'We believe the combination of our recent financing, substantial debt reduction, double-digit annual revenue growth, technological advancements and strong infrastructure, along with a proposed simplified capital structure, position LocatePLUS to emerge as a new and powerful player in the identity validation space.'

About LocatePLUS

LocatePLUS, and its subsidiaries, are industry-leading providers of public information and investigative solutions that are used in homeland security, anti-terrorism and crime fighting initiatives. The Company's proprietary, Internet-accessible database is marketed to business-to-business and business- to-government sectors worldwide. LocatePLUS' online customer base numbers approximately 20,000 members, including over 2,000 law enforcement agencies and many major police departments across the country. Clients include leading U.S. agencies, including the FBI (Federal Bureau of Investigation), ATF (Bureau of Alcohol, Tobacco, Firearms and Explosives) and DEA (Drug Enforcement Administration). Channel partners include Loislaw, Earthlink, Imaging Automation, AssureTec, Metro Risk Management LLC, and the nation's leading recruitment site. For more information, visit the Company's Website at http://www.locateplus.com. For investor information, visit http://www.otcfn.com/lplha.

Safe Harbor Statement from LocatePLUS: Statements in this press release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items, and network or service offering growth, together with other statements that are not historical facts, are 'forward-looking statements' as that term is defined under the Federal Securities Laws. Any forward-looking statements are estimates, reflecting the best judgment of the party making such statements based upon currently available information and involve a number of risks and uncertainties, including the timing of any expansion of the Company's database, and other factors which could cause actual results to differ materially from those stated in such statements. Risks, uncertainties and factors which could affect the accuracy of such forward-looking statements are identified in the public filings made by the Company with the Securities and Exchange Commission, and forward-looking statements contained in this press release or in other public statements of the Company should be considered in light of those factors.

For more information, contact:
At LocatePLUS: Investor Relations:
James Fields Rick McCaffrey
LocatePLUS Holdings Corp. OTC Financial Network
978-921-2727 x124 781-444-6100 x625
[e-mail] [e-mail]

SOURCE LocatePLUS Holdings Corp.



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ps. Well, what do you folks think about this?